"The manifesto of BJP has clearly said it will not allow FDI in multi-brand sector. Unless the government takes certain favourable decisions on this, the growth of the sector is unlikely," he added.

Investors, both domestic as well as international, are also not keen on investing in developing retail real estate, Jones Lang LaSalle Country Head Anuj Puri told PTI.

"Since 100 per cent FDI is allowed in development of commercial properties according to norms, the investor has to do all the ground work, including getting all the approvals for building layouts and infrastructure facilities among others. Investors fear the challenges that come along with this.

"Besides, there is no guarantee about getting the right retailers and are sceptical about returns. Therefore, they are unwilling to take the risk," he said.

Similar is the case with domestic private equity investors, who are forced to look at other options in the real estate sector.

"There was a time when we witnessed huge investments in mall development from domestic players. But due to the risks like delay in approvals, rising cost and low returns, even they are cautious," Puri said.

"We do not see any relief to the sector at least in the near future. It is only if the existing norms are tweaked that the industry will move on the growth path," he added.